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E-Reader Price War: How Low Can It Go?

Sony's Reader

Sony (SNE - Get Report) announced a new version of its e-reader on Sept. 1 -- but while its competitors are lowering prices, Sony refuses to join the price war.

The e-ink device will be thinner, lighter and offer more features than the original device. The five-inch Pocket Edition will sell for $179, the standard Touch Edition is going for $229 and the larger seven-inch Daily Edition is priced at $299.

Sony comes in at No. 2 in the e-reader world, with a 35% market share, according to Forrester, but is fighting neck-and-neck with Barnes & Noble to retain that slot.

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